The work of the Philippine Amusement and Gaming Corporation (PAGCOR) was a significant component of the successful implementation of a regulated gambling framework. PAGCOR is responsible for managing the country's land-based gambling operators and online casino licensees and enforcing all associated legal standards, including joint force operations to shut down illegal gambling rings.

 Success is Rewarded with More Work

One of the challenges that PAGCOR faced due to its success in the region was the growth of the Filipino gambling market.

As the market grows in value, not only do more licensees become interested in joining, which means more sites to manage, but more unscrupulous operators begin to target players from the Philippines with welcome bonuses aimed at getting them to play unlicensed offshore slots, live dealer games, roulette, and more.

This resulted in a 2023 announcement that PAGCOR would be looking to hand over its casino management roles, both land-based and online so that it could focus exclusively on its regulatory responsibilities.

  IEC Steps Up to Run the Gambling Industry

On 9 May 2024, the Hong Kong-based International Entertainment Corporation (IEC) announced that it had been granted a “Provisional License to operate Casino in the Philippines”.

The full commencement of operation said:

Quote

“The Board is pleased to announce that on 9 May 2024, the Group commenced its limited operation in the Casino; the Group will officially take over the entire casino operation with effect from 11 May 2024 and will be the operator of the Casino under the Provisional License.”

This will allow PAGCOR to shift its focus to ensuring that international multi-license casino operations abide by the local Gambling Act and that irregular promotions and unlicensed operations can be shut down sooner.

  Redefining Financial Gambling Controls

One of the first duties of the newly appointed casino control body is putting a comprehensive money laundering and terrorist financing preventive program (MLPP) in place.

According to the IEC announcement, they have outlined a structure based on the following:

1. Comply with strict ethical standards and follow good corporate governance practices as outlined by PAGCOR to safeguard the honesty of their operations and the gaming industry.
2. They must have enough knowledge about customers to prevent suspicious individuals or groups from doing business with or forming and maintaining connections with casinos.
3. Adopt and adequately use an anti-money laundering and anti-terrorism financing system that identifies, evaluates, monitors, and manages risks related to money laundering and terrorist financing.
4. Ensure staff members understand their roles under this policy and fulfil them according to the MLPP.
5. Work with AMLC and PAGCOR to effectively apply the AMLA, this CIRR, and other relevant rules.

To oversee the process, the IEC has also installed a three-person oversight committee, which has been tasked with the following:

• To develop and establish a comprehensive and risk-based Anti-Money Laundering and Counter-Terrorist Financing Program (MLPP) that complies with the laws and regulations governing AMLC and PAGCOR.
• To supervise the implementation of the MLPP and ensure that the casino and its employees are not used, intentionally or unintentionally, to legitimize proceeds from money laundering or terrorist financing.
• To provide reports to the Board concerning the casino's compliance status.
• To evaluate and approve non-standard and suspicious transactions brought forward by the operations group, audit group, or other review groups and any other matters related to money laundering or terrorist financing that require Board approval, prior acceptance, and processing.

While the initial oversight committee will comprise three members, the charter states it will require a minimum of three. This could grow much more significantly as the IEC settles into its management role and begins to broaden the scope of its duties.

 PAGCOR Says: Show Me the Money

As part of the Provisional License Agreement, the IEC will pay PAGCOR a monthly fee of at least Php60,000,000 (€961,783) based on an undisclosed percentage of the casino operating revenue.

While the revenue share agreement was not disclosed, the announcement did include a caveat that where the expected casino payment exceeds the Php60 million minimum, the more significant amount must be paid to PAGCOR.